FxWirePro: NZD/JPY retraces break above 200-DMA, intraday bias neutral

• NZD/JPY spiked past 200-DMA at 80.12 to hit 4-week high at 80.38 on Wednesday's trade.
   
• Kiwi was buoyed after the latest Newshub-Reid Research poll showed the ruling National Party on 10 points lead of its Labour counterpart.
   
• The bird is facing exhaustion, NZD/JPY drops lower, retraces break above 200-DMA.
   
• Meanwhile, fading safe-haven demand, on easing geopolitical concerns despite North Korea’s rejection of the new sanctions imposed by the UN Security Council, dented Yen, keeping downside limited.
   
• That said, New Zealand election poll will continue to be an additional risk factor influencing price movement.
   
• 50-DMA at 80.85 is major resistance on the upside, break above opens scope for further gains.
   
• On the flipside, 5-DMA at 79.59 is immediate support. Break below cloud see weakness.

Support levels - 80.07 (100-DMA), 79.59 (5-DMA), 79.53 (23.6% Fib retrace of 83.91 to 78.187 fall)

Resistance levels - 80.85 (50-DMA), 81 (Aug 10 high), 81.72 (61.8% Fib)

Recommendation: Bias neutral, we recommend waiting for clear directional bias.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -44.1393 (Neutral), while Hourly JPY Spot Index was at -72.3609 (Neutral) at 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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